Prediction Market Architecture
Overview
Fortuna Protocol introduces a new prediction market architecture that fundamentally differs from traditional binary systems such as Polymarket.
Traditional Prediction Markets
Most prediction markets operate on a binary probability model:
Outcomes are priced between 0% and 100%
Markets are capped
Upside is limited as probabilities approach certainty
Conviction expression and hedging are constrained
Fortuna Protocol Architecture
Three-Pool, Two-Token System
Each market consists of:
YES Token Pool
NO Token Pool
Prize Pool
The YES and NO Tokens
Launch at the same initial market cap (e.g. 10,000)
Have no price ceiling
Can appreciate infinitely
Can be bought or sold at any time
Can be held simultaneously to hedge exposure
Are not bound by an inverse probability curve
Trading Mechanics
Buy Fee
1% fee on all buy transactions
Fee is added to the Prize Pool
Sell Fee (Dynamic Punishment Fee)
Dynamic fee between 1% and 9% Determined by:
Holding duration
Time remaining until market resolution
Short-term or late-stage exits incur higher fees. All sell fees flow into the Prize Pool.
Resolution Mechanics
When the market resolves:
Trading is halted
The winning outcome (YES or NO) is determined
All pools are combined:
YES Pool
NO Pool
Prize Pool
The entire combined value is distributed pro-rata to holders of the winning token only. Holders of the losing token receive nothing.
Key Differences vs. Polymarket
Pricing model
Binary (0–100%)
Uncapped
Token structure
Outcome shares
Dual-token
Upside potential
Capped
Infinite
Hedging
Limited
Buy both sides
Sell fees
None
Dynamic (1–9%)
Fee destination
Platform
Prize Pool
Resolution payout
Winning shares
All liquidity to winner
Core Innovation
Fortuna Protocol replaces probability-based pricing with a conviction-weighted, uncapped prediction market, where:
Belief is expressed through capital commitment
Upside is not mathematically limited
Fees accumulate into a growing prize
Correct conviction captures all pooled value
Additional Fees
There is an additional fee for buy and sell +1% for treasury and creator rewards.
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